Money & Banking
HDFC Bank now show charges upfront but customers still needs to opt out
Following an outpouring of outrage by customers on social media, and a satyagraha of sorts by a customer, which attracted plenty of media attention (Read: HDFC Bank charges Rs100 per quarter for accessing 'by-invite-only' feature! http://www.moneylife.in/article/hdfc-bank-charges-rs100-per-quarter-for-accessing-by-invite-only-feature/49700.html ) HDFC Bank mailers  offering special benefits to Imperia customers has now begun to display details of the charges upfront.
 
But there is still a catch. Most customers and consumer activists have pointed out that charges for special services should be on an 'opt-in' basis. Anyone who wants to subscribe should do it of their own volition instead of having to opt-out of something they do not want, need and have not asked for. However, HDFC's Imperia customers still needs to opt out of the offer. 
 
In its latest email message to customers of its Imperia Banking Programme, HDFC Bank says, "As communicated earlier, we charge a nominal fee of Rs100 + taxes per quarter per Customer ID for Savings and Current Account holders. The fee is charged only after you have enjoyed a free trial period of One Year."
 
"You have the option of opting out of this programme at any time, and if you wish to do so, please click here," the Bank says while listing out benefits of remaining signed in for this programme. 
 
As per HDFC Bank, customers who are using this programme, can use any domestic ATM any number of times without any charge or at zero charge. These customers will not be charged any penalty for not maintaining average monthly balance (AMB) depending upon the type of account. HDFC Bank customers need to maintain AMB of Rs5000 and are charged Rs150 for not maintaining the minimum balance.
 
In addition, the Bank offers zero rentals on accessing locker facility (depending upon availability of the lockers) and enhances limit on Imperia Platinum Debit Card without the additional charge of Rs750 per annum. Customers of Imperia Banking Programme will not be charged Rs750 as annual maintenance charges and would be give preferential pricing on loans, the Bank says.
 
Here is the mail sent by HDFC Bank...
 

User

COMMENTS

Sucheta Dalal

6 months ago

If usurious bank charges anger you, please join the fight against it. Sign and share my petition to the RBI governor : copy this link and click here: https://tinyurl.com/k45z4n5

Gurudutt Mundkur

6 months ago

For somebody like me who plans and uses his money well, there i no problem.
I have to keep an AVB of Rs 5K. I consider that I have kept an FD of Rs5K at 4% interest
and use the balance.
I do not have so many valuables that I have to keep them in a locker. Also, if I had, i would prefer to keep them at home and insure the same.... valuables kept in a locker are not insurable. What is the use of keeping them in a locker, if, when I have to sue them I have to take them out and then they are stolen--- they are not insured during that time nor are they in the locker!
I plan my debit card usage and my on line purchases ... so no problem.
Let the Banks set the rules and penalties... I am up to it without paying any penalties.

R Balakrishnan

6 months ago

It is remarkable that the present management is doing everything it can to shake the faith of the customers. But the investors are blissful in their perception that is so wrong. One day, this cookie too shall crumble

REPLY

Suketu Shah

In Reply to R Balakrishnan 5 months ago

I love the way you have put it:)

HDFC Bank head office staff we had experience with behave as if they are celebrities themselves much like Morgan Stanley staff.And lying for them is like a routine practice they cannot live without.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.This bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.This bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

Suketu Shah

6 months ago

One striking aspect of HDFC Bank is they give so much power to their top executives that they do things to harm customers using the banks name even after leaving HDFC Bank.They stalk wealth management customers(or shd I say ex-customers).
Also their wealth management division "director" told me during our dealings in 2011 that our previous service provider Bajaj Capital was giving such ordinary service compared to tghem.Yes .What you donot know is that the Bajaj Capital executive who tried to stalk me was almost arrested in Jan 2015.Probably they are looking to go one up on Bajaj Capital as well as the route to such people with me is straight police since a few yrs,nothing less.Utter nonsense this bank and their staff are-no shame or self-respect.

krishna

7 months ago

hdfc does not send otp for fund transfer.

krishna

7 months ago

No other option other than HDFC which ia best bank. Paytm is saying that it will launch PAYMENT bank will launch by 31 march. if paytm launches bank by sept 2017, then it may become a jio kind disruption in banking space.

Banks credit declines to 24% in real estate, PE funds grow: Report
Kolkata, With the declining bank credit to Indian real estate industry, private equity (PE) investors emerge as the major contributors to the sector by meeting around 75 percent of the funding requirement in the last couple of years, a report said on Tuesday.
 
"Analysis of Institutional Funding in Real Estate", released by Knight Frank India, said bank credit shrank drastically in the last few years from 57 per cent in 2010 to less than 24 per cent in 2016.
 
"Around three-fourth of the real estate sector's funding requirement is met by PE players in the past couple of years; as against one fourth in 2010," it said.
 
The current environment for real estate is both challenging and opportunistic at the same time. Rising non-performing assets (NPAs), higher risk provisioning and mounting losses in the real estate industry have led to significant reduction in credit offered by banks. PE players have replaced banks and are currently the biggest source of institutional finance for the real estate industry," said the research firm's Chief Economist and National Director, Research Samantak Das.
 
According to the report, total funding in the Indian real estate sector increased by 40 per cent from $3.8 billion in 2011 to $5.4 billion in 2016.
 
The industry witnessed the highest amount of PE fund flow in 2015 with more than $3.6 billion investments across 100 plus deals, since 2010. 
 
The report said the year 2016 observed a 13 per cent drop in PE fund flow with less than 60 deals. "However the year 2016 has also recorded the highest amount of the average deal size amounting to $56 million," it noted.
 
"Currently, PE funding is not just restricted to equity but has largely moved towards a quasi-equity type of structure," Das added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

User

Where is the currency going? Why are ATMs dry?
Over the past fortnight, especially as we approached the financial year-end and after, people from all over the country have been complaining about automated teller machines (ATMs) running dry even in metropolitan cities. Why is this happening?  Where has the cash disappeared? After tracking the outpouring of anger on social media and checking with some banking sources, Moneylife has pieced together what is going on with India’s currency supply. As always, the buck stops at the Reserve Bank of India (RBI). 
 
Until the first phase of demonetisation of Rs500 and Rs1000 notes ended on 31st December, the central government, under pressure due to the visible hardship faced by people standing in long queues, was in a mission mode. It had taken the help of the army and air force to distribute currency securely, directly from the printing presses in Mysuru, to key parts of the country, which faced acute shortages. This continued until the elections in various parts of the country, including Maharashtra, Punjab, Goa, Manipur and Uttar Pradesh. 
 
Supplying cash directly from the printing presses is an expensive business and the RBI has to pay for security as well. So, such direct lifting of currency has stopped sometime after 31st December. The RBI decided that the system was sufficiently remonetised and went back to its slow, currency supply system. 
 
However, ATMs began to run dry immediately after, even in metropolitan cities. Officially, all restrictions on cash withdrawals ended on 31st March as per an RBI notification. However, the central bank seems to have goofed up on assessing the actual currency requirement and its own ability to supply it.
 
Public anger is directed at banks.  Banks have been equally callous and are attempting to impose costs on cash withdrawal, as they are running short of cash. Here are some facts about why we are running short on cash:
1. As part of the demonetisation exercise, the RBI printed Rs 2000 denomination notes at its printing presses in Mysuru, with the bright idea of faster remonetisation. However, this backfired badly, since the government presses could not produce enough of Rs500 notes. When this led to a furore, the RBI ordered a stop to printing of Rs2000 denomination notes and the Mysuru presses were also told to switch o producing Rs500 notes. 
2. India’s currency requirement today is in the region on Rs19 lakh crore of cash currency. 
3. Of this, the printing of Rs2,000 denomination has almost stopped at just 3.5 billion (350 crore) pieces of currency, valued at Rs7 lakh crore.
4. Meanwhile, there are only six billion pieces of Rs500 denomination currency printed, with a value of Rs3 lakh crore. 
5. If one includes the stock of Rs100 denomination currency in the country, the total stock is Rs13.5 lakh crore. 
6. Bankers estimate the shortfall of currency is about Rs5.5 lakh crore of 10 billion (1,000 crore) pieces. 
7. This means that unless the government or the Prime Minister gets into the act and demands a crank up of currency printing and supply, we are destined to suffer currency shortages for the next six to eight months or even a year. This is what sober experts have been predicting late last year.
 
Other Problems: 
The mystery of the vanishing currency is further exacerbated by two other factors. First, that people have gone back to using cash for their regular needs, since it is just so much simpler. Meanwhile, media reports as well as rumours that the government plans to phase out the Rs2000 denomination notes over time has only increased the demand for Rs500 from cash hoarders and the currency is disappearing from banks very fast. The impact is two-fold – ATMs can stock less currency if the denomination is Rs500 notes and Rs100 instead of Rs2000. A lot of Rs500 notes are going out directly from the banks to favoured customers. 
 
Moneylife has written extensively about Hyderabad, but we hear as many complaints from Bengaluru, Pune and even parts of Mumbai. On 3rd April, we wrote about issues faced by customers in Mumbai. Read here: http://www.moneylife.in/article/cashless-atms-problematic-netbanking-and-pos-leave-customers-fuming-at-banks/50146.html. Earlier, it was felt that the problem was with State Bank of India (SBI) alone , but that is not the case. (Read http://www.moneylife.in/article/pre-merger-is-sbi-heading-towards-bankruptcy/50020.html). It is clearly a nationwide epidemic. We have written to the RBI asking about the situation and when the situation will normalise. We will update this report if and when we hear from the central bank. 
 
Here are some public reactions on twitter. 
 
 
 
 
 
 

User

COMMENTS

Sucheta Dalal

6 months ago

If these bank charges worry you and anger you, please sign my petition to the RBI governor and finance minister. And do share it. Numbers make a difference : https://tinyurl.com/k45z4n5

REPLY

Pradeep Kumar M Sreedharan

In Reply to Sucheta Dalal 6 months ago

Signed and shared to thousands. Again and again.

Pradeep Kumar M Sreedharan

7 months ago

Looks plain and simple to me; now that whatever went on in the name of demonetisation has failed to drive people to digital money, they seem to be squeezing cash to force them into digital money.

Mr rick

7 months ago



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shrikant sundaram

7 months ago

YAwning gap in the execution and planning done if any. govt is taking citizens for granted and so are the banks... That people will find ways to get their work done one way or another... Just as banks hand over notes to favored customers, govt is also just favoring a few while the rest depend on chance to get thru

V ganesan

7 months ago

recently i have visited my sbt branch on april 3rd 2017.I enquired about minimum balane and other charges regarding withdrwal in atm.The manager is not able to show authenticated price list. I got a reply from the manager ican gothrough print media and telemedia. NOW if any charges levied without authenticated information i am planning a dharna in the moth of may infront of RBI IN CHENNAI.As per rbi notification atleast i should get information regarding charges onemonth in advance.

Deepak Narain

7 months ago

Govt has failed miserably in managing the situation after demonetization. All bureaucratic excuses for non-performance. We expect better from PM Modi. The problem can be solved if the political leadership means business genuinely. They are comfortable after winning elections but public is disappointed and feels cheated. Some emergency steps need to be taken to maintain their credibility.

ksrao

7 months ago

If only the govt had withdrawn 1000 den. notes and flushed the money supply with more 500 den. notes and new 200 den. notes ( as it is compelled to do now), then a good portion of the high den. notes leading to corruption would have vanished and along with them corruption too. Introducing 2000 den. notes while blaming 1000 den. notes for and expecting corruption to vanish, is like instructing a boy, "You should never scold others, you idiot." With smaller den. notes in circulation, common man's life would have been easier. All the measures that are taken now to book black money hoarders and tax evaders could have been taken with the same effect but without the useless upheaval that we went through. Both the government and RBI have proved to be unthinking and immature. RBI governor and his deputies get pay hike for this wonderful achievement.

Gopalakrishnan T V

7 months ago

The reasons are not far to seek. The preference for cash is back with the public. Using credit and debit cards invites some convenience ( Inconvenience for customers) Charges by all airline and travel agents like Makemytrip etc. Banks are reluctant to give cash although RBI has withdrawn all cash withdrawal restrictions. Digitalisation though took of during demonetisation has almost crashed now is the market reality. Retailers prefer cash and people are also comfortable with cash as the cards are not freely accepted .Some merchant establishment including Government undertakings levy 2% charge for using cards. People avoid depositing cash back in banks as the very sight of customers at banks premises is not liked by the staff as they feel customers are a nuisance and banks do not depend anymore on Customers as our father of Nation imagined and defined customers. Rs 2000 notes and Rs 500 are again getting hoarded by the vested interests as they know that it will take years for withdrawal if it all some Government decides in that way. Black money generation continues in new denomination notes and now bribes have to be paid in new notes and in kind. Old habits die hard and the system encourages continuance of old habit.

Alok Asthana

7 months ago

But there is no idea blaming RBI any more. Is just a slave of the Govt. They have handed over the keys to Sri Modi. Is no longer of any consequence in the Indian system. They just follow orders. No wonder Raghu Rajan had to go.

Simple Indian

7 months ago

While I agree with the writer that ATMs across even major cities are running out of cash, I believe the public is equally to blame for the situation. Have seen many well-off people pay at supermarkets, petrol pumps, etc. with cash, when they can very well pay by Credit / Debit Card. I believe this is because such people are either too accustomed to using cash as a mode of payment (which was supposed to change after demonetization), or have enough black money (taken as bribes, or by having undisclosed illicit incomes) and hence want to avoid the tax net. As a result, people with a genuine need for cash, for buying groceries or vegetables/fruits, etc. suffer. Even Banks haven't pushed Digital Payments platforms like UPI Apps or e-Wallets aggressively, which would have helped reduce dependence on cash at large. While institutions like the RBI will remain incorrigible when it comes to people-friendliness, the public at large too can do its bit to ease the situation.

REPLY

Radhakrishnan Machat

In Reply to Simple Indian 7 months ago

Why should the govt tell the people how to use/spend their money? According to a recent report, one per cent on Indians owns 60% of the country's wealth. The other 99% per cent own 40% of wealth. Instead of inconveniencing the 99% per cent the govt should have concentrated on the 1%.

Simple Indian

In Reply to Radhakrishnan Machat 7 months ago

Well, the Govt everywhere has every right to advise its citizens to make the financial system more transparent and efficient, by asking people to opt for payment systems which are efficient and dependable. Though I believe that the demonetization exercise was a huge disaster, as it didn't achieve any long-term objective, but instead put common public into too much inconvenience to justify such a move. However, I support the Modi Govt's drive for Digital Economy as the cash economy thrives from black-money, which many Indians have in tons. There are other countries like Argentina who have urged its people to opt for Aadhar-like phone-based payment systems, which has reduced dependence on cash considerably. Besides facilitating black-money circulation, cash also makes fake currency racket flourish, which affects every common citizen too. Of course, no major change can / should be done by force, but should be done gradually. Education of the people is most important for them to realize that certain policies of the Govt are indeed for their own good.
Also, the disproportionate wealth you mention exists globally, and there is no short-cut to solve it. IMHO, crony-capitalism is the root cause of income disparity between the rich & the poor everywhere. The only solution is for India (and every country) to strike a fine balance between being a free-market economy and a Welfare State.

Abhijit

7 months ago

Savvy enough to tweet, cant cut down cash usage?

Abhijit Gosavi

7 months ago

Rs 19 Lakh Crores is Rs 19 X 10^12, which is approx. 0.29T dollars! That is a huge amount for India's banking system to regenerate! If people are going back to cash for everything, yes, it looks like there's a challenging period ahead until equilibrium is reached. Great analysis, as usual. Isn't this hurting the economy?!

ksrao

7 months ago

Demonetisation was a half-conceived plan, hastily introduced by govt and totally bungled by RBI. If govt had withdrawn only 1000 value notes and pumped in more 500 value notes, people would not have suffered and still we would have seen the same success as now in the areas of black money reduction, fake money reduction and terrorism reduction, the great goals of the govt.

Hanumant Waghamare

7 months ago

As soon as elections are over I think government has started neglecting the citizens as they always do

Radhakrishnan Machat

7 months ago

The government at the Centre is bent up on punishing people of this country for voting it to power. Adding to people's misery is the fexible spines of people at the helm of RBI. The pity of democracy is that those political parties which garner less than 50% vote share rule the country without even considering the wishes of those rejected them.

REPLY

Pradeep Kumar M Sreedharan

In Reply to Radhakrishnan Machat 7 months ago

Less than 30%

Radhakrishnan Machat

In Reply to Pradeep Kumar M Sreedharan 7 months ago

True. Percentage varies from govt to govt. But, imagine a party with 30% vote share ruling the 70% rejected it. Also when it comes to contributions, political parties do a flip-flop. Look at the irony. The govt at the Centre, which tells villagers to avoid open defecation, also wants them to use digital mode of transactions!

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